CABEI and Credi Q sign agreement to evaluate financial products for MSMEs

Tegucigalpa, May 5, 2015. - Today, the Central American Bank for Economic Integration (CABEI), through its Green MSME Initiative, and Financiera CrediQ S.A., signed a US$35,000.00 technical cooperation agreement to conduct a market study to determine the potential of Financiera CrediQ’s MSME clients to replace the vehicles used in their business activities with more fuel efficient vehicles.

Specifically, the agreement seeks to conduct a study to determine the potential and interest of MSMEs to purchase more fuel efficient vehicles for their business activities. Subsequently, Financiera CrediQ will create mechanisms and products designed to provide MSMEs with financing to purchase fuel efficient vehicles.

"This study will provide Financiera CrediQ with inputs that enable the creation of financing lines for MSMEs to undertake this type of investment, as well as promote this type of financing on a national level," said CABEI Manager for Honduras, Pedro Emilio Banegas, while presiding over the signing ceremony together with Financiera CrediQ Manager, Nelly Ocampo.

To date, CABEI’s Green MSME Initiative has financed more than US2.8 million for the replacement of 85 business purpose vehicles through Financiera CrediQ, leading to a reduction of more than 1.5 tons of carbon dioxide (CO2) and other pollutants in the atmosphere, in addition to savings for the beneficiary MSMEs.

The initiative complements other CABEI operations to improve the conditions and access of the Central American MSME sector to financing for green investment.

The CABEI-run Green MSME Initiative has financial support from the German government’s KfW Development Bank and the European Union. It provides financing for small-scale renewable energy and energy efficiency projects amounting to US$44.4 million, which is channeled through CABEI’s network of financial institutions. It also includes a US$4.5 million technical cooperation program intended to provide technical cooperation to financial institutions, energy audits at MSMEs and feasibility studies for renewable energy projects, in addition to promoting and raising awareness about the issue.